Finance Ministry issues tender for four hi-tech investment funds

Finance Ministry helps boost investment in high-tech by issuing a new tender for funds.

By
July 9, 2017 14:27
1 minute read.
Moshe Kahlon

Moshe Kahlon. (photo credit: MARC ISRAEL SELLEM)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Aiming to see more Israeli money invested in Israeli innovation, the Finance Ministry published a tender on Sunday for the establishment of four new hi-tech investment funds, to be listed on the Tel Aviv Stock Exchange. 


As part of the tender, launched together with the Israel Securities Authority, the Accountant General's Office will be selecting four mutual fund managers, who will be responsible for registering the participating units of the funds – at a minimum of NIS 400 million – on the stock exchange. Investors in the funds will receive state protection against losses, as well as guarantees for raising credit, according to the Finance Ministry. 


Be the first to know - Join our Facebook page.


"The new funds combine two important goals of the Finance Ministry – opening a new investment channel for those saving for retirement, alongside a new source of capital for the Israeli hi-tech industry," said Finance Minister Moshe Kahlon.


Today, most of the capital invested in Israeli hi-tech research and development comes from foreign sources, and many of the companies are acquired by foreign corporations at early stages of growth, a statement from the Finance Ministry explained. As a result, the Israeli capital market is often unable to "enjoy the fruits" of these companies at a mature stage, the statement added. 


The new funds will be combining investments in trade-able shares of the hi-tech sector, as well as significant investments – at least 30% – in early stage companies, the Finance Ministry said. For each fund that meets the terms of the tender, the government will be providing backup of up to NIS 50m., according to the ministry. In addition, the ministry said that the funds will be able to raise credit backed by state guarantees of up to NIS 100m. per fund. 


"Our proposal intends to create an investment instrument for the general public that will enable participation, for the first time, in the success of Israeli technology companies, while providing protection by the state," said Prof. Shmuel Hauser, chairman of the Israel Securities Authority. "This is another important tool we have promoted to support small businesses and technology companies."

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue

By MAX SCHINDLER